In order to compensate the revenue leakage in the direct taxes, the income tax department has issued prosecution notices to the directors of several multinationals, ET reported.
According to the report, the tax officials have issued notices to the Company directors of Google, Facebook, Samsonite, and KraftHeinz etc.
Prosecution notices make such cases equivalent to criminal offenses and give income tax officers additional powers, akin to those of the police, said experts, adding that taxpayers can only seek relief from a magistrate’s court in such instances.
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In some cases, prosecution notices have been issued to directors not based in India and to companies that had failed to deduct tax of around Rs 1,000 on an employee’s salary.
Many multinationals which have been served with the notices will now have to tackle this situation on a priority basis as even some of the non-Indian directors have been served with these prosecution notices.
